Released

A comprehensive report on gas unbundling released by the U.S.General Accounting Office found that as of July 31 of this yearonly about 3.9% of the of the residential gas customers eligible tobuy gas from suppliers other than their regulated gas utility weredoing so. Roughly 553,000 residential gas users behind thecitygates of 43 gas utilities in 16 states were participating incustomer choice programs. Commercial participation levels were notavailable. The report, titled Energy Deregulation: Status ofNatural Gas Customer Choice Programs, was requested by Sens. JeffBingaman (D-NM) and Dale L. Bumpers (D-AK).

The Energy Information Administration released its Annual EnergyOutlook 1999 (AEO99) last week, projecting gas demand will grow byabout 50% to 33.17 Tcf by 2020 from 1997 levels of 22.59 Tcf, whichis a 1.7% average annual increase.

The Energy Information Administration released its Annual EnergyOutlook 1999 (AEO99) yesterday, projecting gas demand will grow byabout 50% to 33.17 Tcf by 2020 from 1997 levels of 22.59 Tcf, whichis a 1.7% average annual increase. Total energy demand is projectedto grow 1.1%/year to 119.9 quadrillion Btu by 2020 from 94 quads in1997.

The Energy Information Administration (EIA) in its Annual EnergyOutlook 1999 released Tuesday is forecasting only a gradual 0.8%average annual rise in natural gas wellhead prices through 2020.Prices will go from $2.23/Mcf in 1997 to $2.68 in 23 years later.

MCN Energy Group said it is planning a new direction for itspreviously released strategic plan that will emphasize steadygrowth in core operations, more predictable earnings and moderatecapital investments.

A newly released Gas Research Institute study examining theshift in perceptions of the U.S. gas resource base, titled”Changing Perceptions Of Remaining U.S. Conventional GasResources,” discusses how the move — from the shortage mentalityof the 1970s to today’s view that gas is abundantly available –has resulted from an interplay of factors. Factors discussedinclude increased exploration success rates in frontier plays,improved gas well recoveries and continued reserve appreciationactivity in existing fields. GRI, with Energy and EnvironmentalAnalysis Inc. of Arlington, VA, developed the study.

A newly released Gas Research Institute study examining theshift in perceptions of the U.S. gas resource base, titled”Changing Perceptions Of Remaining U.S. Conventional GasResources,” discusses how the move – from the shortage mentality ofthe 1970s to today’s view that gas is abundantly available – hasresulted from an interplay of factors. Factors discussed includeincreased exploration success rates in frontier plays, improved gaswell recoveries and continued reserve appreciation activity inexisting fields. GRI, with Energy and Environmental Analysis Inc.of Arlington, VA, developed the study.

A supply/demand forecast released by Nova Corp. confirms whatmany market observers have expected: Canadian gas producers will behard pressed to fill all the new transportation capacity coming online this winter and could find it even harder to fill storage andmeet demand next summer.

Canadian price spikes last week following a supply/demandforecast released by Nova Corp. indicate the market north of theborder could be in for a wild ride this winter. While marketobservers have long expected supply to fall short of new exportcapacity, marketers acted as if surprised when Nova forecast 13.8Bcf/d of throughput this winter, 700 MMcf/d more than winter1997/98 but far short of the 1.1 Bcf/d increase in export capacityplanned by Northern Border (700 MMcf/d) and TransCanada (417MMcf/d).